...Stakeholders are people or groups of people who can be affected by, and therefore have an interest in, any action by an organization. The stakeholder concept is the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders. There are two different kinds of stakeholders; Internal & External Internal Stakeholders -These stakeholders are members of the organization: Employees Shareholders (who own the business) Managers and directors of a business External Stakeholders - These stakeholders do NOT form part of the organization but have a direct interest or involvement in the actions of the organization: Customers Suppliers Government Competitors Special interest groups Business decisions can have both negative and positive effects on stakeholders, but it is rare for all stakeholders to be either positively or negatively affected by any one-business activity. It is also possible for any one-stakeholder group to experience both negative and positive effects from the same business decision. This is why conflicts of interest between stakeholder groups with different objectives can arise. Unilever is the world's third largest consumer goods company. Its key stakeholders include: Customers Employees Suppliers Investors Government regulators Local communities Civil society organizations Academics and individual concerned citizens With some, such as our customers, employees, suppliers and investors...
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...Stakeholders Introduction In this assignment I will be talking about two different businesses, Holly Lodge Girls’ College and McDonalds, and stakeholders involved with them and how they influence the businesses. Holly Lodge provides education to its customers, and some of their aims and objectives are being committed to academic progress and supporting students to the best they can be, and prepare them to be responsible citizens with a shared set of values and sense of community as well as compassion and responsibility etc. For McDonald’s they have many aims and objectives such as they’re committed to providing quality food quickly that their customers can trust with the best possible service, showing clear career paths to their employees that they can take, and helping out with the community and environment by litter picking for example. Stakeholders Stakeholders are an individual or group which is affected by a business, and has an interest in its success or failure and can be either an internal stakeholders i.e. employees, suppliers, managers; or external stakeholders i.e. customers, local community, trade unions. Customers Holly Lodge’s customers consist of its students and their parents. They both want good teachers and teaching environments otherwise they’re less likely to learn, with this they want the best grades possible so they can go on and get a good job and support themselves. Parents are also more likely to want the school to aid in teaching their child...
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...Stakeholders, Shareholders and Wealth Maximization V. Sivarama Krishnan, University of Central Oklahoma ABSTRACT This paper attempts reconciliation between the two somewhat extreme views espoused by the shareholder wealth maximization paradigm and the stakeholder theory. The stakeholder theory challenges the basic premise built into corporate finance theory, teaching and practice. Corporate finance theory, teaching and the typically recommended practice are all built on the premise that the primary goal of a corporation should be shareholder wealth value maximization. Extant theoretical and empirical research in financial economics also generally accept shareholder wealth maximization as the normative and ideal goal on which all business decisions should be based. This paradigm assumes that there are no externalities and all the participants engaged in transactions with the firm are voluntary players competing in free, fair and competitive markets. A very different view is offered by what is loosely called stakeholder theory. The stakeholder theory posits that the focus on shareholders and firm value is misplaced and managers should be concerned with all stakeholders of the firm. The paper attempts to address what is felt as a lack of dialogue between the two camps. INTRODUCTION Corporate finance theory, teaching and the typically recommended practice at least in the US are all built on the premise that the primary goal of a corporation should be the maximization...
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...Part one A stakeholder is any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organisation (Freeman 1984, 25). They have the interests in the activities of an organization and can be divided into internal and external stakeholders. In addition, there are different levels of stakeholders: primary and secondary. The level of stakeholders depends on the political, economic and social environment. Internal stakeholders are those from within the business, e.g. managers, employees and shareholders. In the Icelandic banks, the internal stakeholders are managers, staff and employees of the Icelandic bank, and there is no doubt that the owners are the most important stakeholders among all of them. The staff and employees get the paid from company directly and do service for them, that is why they are the internal stakeholders. The external stakeholders are such as suppliers, government, financiers which influence and are influenced by organization but are not its ‘internal part’ (business dictionary). The primary stakeholders are 300,000 British citizens and Icesave housing customers like David Pedrick and his wife, even though they just has a little interest in it，domestic creditors are also a part of external stakeholders. The secondary stakeholders are governments, the media, the pressure groups Liberty and the communities where organizations are nearby or located like Kaupthing Singer& Friendlander which is the subsidiary...
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...Stakeholders Role Travis Green MGT 420 Managing Quality in the Supply Chain March 10, 2013 Stakeholders Role Stakeholders are the key assets in an organization because they can either affect or be affected by the way the organization operates. The level that each stakeholder is impacted varies from organizational layoffs to stock prices rising. Not all stakeholders are equal, and for this reason the level in which each stakeholder plays in the quality management process will vary, depending on the degree of involvement. The key relationships for an organization reach far beyond the relationships with its customer base to include relationships with its employees, as well as those with suppliers and partners, investors and even government regulators and other parties that may have any impact on the organizations climate or market that it operates in. A slight change in any of these relationships may cause an upset that can ripple throughout all the other relationships. Therefore, it is imperative for the organization to convince its investors to stay with the organization and keep their shares, employees to cooperate between each other, the organizations customers to purchase more products or services, and their suppliers to maintain a strong, reliable supply chain. Starbucks took to heart the concerns of it customers and shareholders regarding the presence of genetically modified material in their products. To set the customer and shareholders at ease, Starbucks launched...
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...Stakeholders Role Stakeholders are the key assets in an organization because they can either affect or be affected by the way the organization operates. The level that each stakeholder is impacted varies from organizational layoffs to stock prices rising. Not all stakeholders are equal, and for this reason the level in which each stakeholder plays in the quality management process will vary, depending on the degree of involvement. The key relationships for an organization reach far beyond the relationships with its customer base to include relationships with its employees, as well as those with suppliers and partners, investors and even government regulators and other parties that may have any impact on the organizations climate or market that it operates in. A slight change in any of these relationships may cause an upset that can ripple throughout all the other relationships. Therefore, it is imperative for the organization to convince its investors to stay with the organization and keep their shares, employees to cooperate between each other, the organizations customers to purchase more products or services, and their suppliers to maintain a strong, reliable supply chain. Starbucks took to heart the concerns of it customers and shareholders regarding the presence of genetically modified material in their products. To set the customer and shareholders at ease, Starbucks launched a line of baked goods made with organic ingredients along with offering certified organic...
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...Role of StakeHolder Lucy Hernandez November 23rd, 2015 MGT/420 Professor Rita Foster Role of StakeHolder - Intro The word “stakeholder” means any person with an interest in the business -- someone who can contribute to the company’s growth and success or who benefits from its success. There are various stakeholders in a business such as Employees, StockHolders, Customers, Vendors, and even the community. Each plays different roles and their involvement time is also different from each other. The reason for this is that the company’s CEO seeks to utilize the skills, experience and knowledge of each stakeholder group to further the organization’s long-term goals and ensure it’s success. Employees While management sets the overall strategic direction for the company, it is the employees that are responsible for carrying out the tasks specified by the managers in the company’s strategic plan. Employees are the closest to the action. In a manufacturing environment, they work directly on the company’s products, and they interact with customers on a daily basis. The company’s success depends greatly on the skill and dedication of its employees. Without the employees performing their roles and implementing the ideas of the CEO, business planners and financial managers , the company will not reach its revenue and profit potential. Stockholders The initial role of a stockholder is to provide the capital a company needs to grow and expand. If we talk about a startup company,...
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...Stakeholder Analysis Organizations must focus on purposeful communication to stakeholders to stay competitive in the marketplace. A critical aspect of sustaining success is built by committed leaders who have a solid foundation of listening, communication, trust, respect, and belief in the creative potential of each employee (Darling, Beebe, 2007). These assets are vital as Best Production determines and executes a solution to solve a business problem. Best Productions Scenario Best Production is a large video game company that develops new video games. They are working on a new video game for release during the holiday season, which is one-month away. Customers are anticipating the game’s release and the company expects to make a significant profit. Marketing displays have been in stores for weeks. Pre-sales game reviewers found a bug in the software that affects game quality. The game can be played but the defect decreases the quality. This game is a sequel to several previous games, and customers expect the same quality gaming experience. Plans are underway to develop the next sequel. The company’s executives need to decide to either; ignore the bug and release the video game on time or delay the game’s release to January to fix the software defect. Internal and External Stakeholders Stakeholders are individuals or entities that have an interest in the organization. This can be internal stakeholders; employees, internal customers, or management. External...
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...The Stakeholders. Employee. One stakeholder of McDonalds would be its employees. The employees are the internal stakeholders as they work in the company and have an interest and influence the way it is run. So anybody that works for McDonalds is a stakeholder. This could be from a part-time team member or somebody from the head department. It doesn’t matter as long as they work for the company. McDonalds employees often have staff meetings with managers where they can talk about what they think is going well or not so well this is why employees are internal stakeholders as if they Think something needs to be changed, they can influence this change to happen. Customers. Customers are also stakeholders they are slightly different from employee stakeholders though, as customers are external stakeholders this is because they don’t work for the franchises, but they still buy products from them so they have an interest in McDonalds. This means that every customer who buys from any McDonalds franchise is a stakeholder. Even if they only use McDonalds occasionally. McDonalds attracts customers of the type Adults with young children, young children, business partners and teenagers. Customers’ interests in McDonalds for many different reasons, one might be there choices given example vegetarian or non veg. Kids meal and Adults mean.one might be that they a promotional meal has come out. McDonalds is always looking for feedback on their products so if they get this from their...
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...Why does stakeholder engagement matter? Stakeholder engagement is considered to be important for the long -term success of the business. Nowadays more businesses are concerned about collaboration since they realize that emotions play a great role in determining business outcomes. In recognizing this, they tend to use more communication strategies aimed at engaging their customers more broadly and deeply. Here’s a map showing the significant impact of that stakeholder engagement events have on customer perception. http://www.coleridgeconsulting.co.uk/our-services/stakeholder_engagement_benefits.htm This is how I think about why stakeholder engagement is important: Stakeholder engagement displays the willingness to listen. It enables two-way communication which not only provides information but also seeks new inputs to the system. By receiving more information from customers, it leads to effective decision making by addressing possible problems in advance. Stakeholder engagement help managing business risks. Stakeholder engagement shifts from individual to shared responsibility. It turns opposition into support that helps building emotional connection to the organization and create organisational loyalty. By understanding how people are motivated, it allows the company to more easily identify new solutions that get greater stakeholder buy in. Moreover, when people feel be engaged, they are willing to put extra effort towards the business that they trust or...
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...Stakeholder engagement Stakeholder engagement is a process which is close to the heart of all major organisations which have a sound operating philosophy. By engaging with the stakeholders, the CEO’s ensure the long term success of their business or projects. This is by getting the various interested parties to buy into the success of their venture by making them a part of the decision making and also ensuring that their concerns or requirements are met. Even though this may be driven by rules and regulations to a great extend, we are witnessing a more proactive, inclusive and broader approach in recent times. This is usually a cradle to grave approach taking into consideration the whole life span of the project and its continued or total impact on the various parties involved. The positive impact of good stakeholder relationship on reputation and in turn the profitability of the venture is well recognised by the business community. In fact the brand value of a company is directly proportional to its positive rapport with its stakeholders. As in any relationship mutual trust, respect, transparency and understanding, all play a part in maintaining a constructive engagement with the stakeholders. It takes time to build trust and past records become very important for an organisation embarking on a new venture. Organisations have to tailor their engagements to suit their business depending on the size of the project, its nature and impact on the stakeholders and the environment...
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...Role of Stake Holder MGT/420 The role of stakeholders in a business is an important aspect to consider when implementing a quality management process. The quality management process is beneficial in assuring the product meets the requirements of consumers. The process of quality management includes to set quality targets or goals for your staff or team to meet. The second step in the process is to determine how the quality of the product or target will be measured. After this has been determined the quality should then be measured and evaluated to determine necessary improvements or current issues. Once this has been completed it is important to report the finding for further changes. It is important for stakeholders to provide input in determining the necessary quality of products as well as the steps needed to meet the target quality. Since stakeholders often have an interest in the product they will be able to provide feedback, knowledge, and may even provide a competitive edge. It is the duty of the stakeholder to monitor the organizations ability to adhere to legal, ethical, and corporate requirements. Of course the influence and decision making power a stakeholder has on an organization is dependent on the stakeholder’s level of ownership, financial investment, and desire to see the organization grow. Provided an organization has multiple stakeholders they may meet to discuss or determine the level of quality they would like to see from their investment...
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...Cross-Cutting Tool Stakeholder Analysis October 2005 Resources for Implementing the WWF Standards Contents What Is Stakeholder Analysis?............................................................................................ 1 Why Stakeholder Analysis Is Important ............................................................................. 1 When to Use Stakeholder Analysis ..................................................................................... 1 How to Develop and Use Stakeholder Analysis................................................................. 2 1. Identifying the key stakeholders and their interests (positive or negative) in the project ..........2 2. Assessing the influence and importance of each stakeholder as well as the potential impact of the project upon each stakeholder .................................................................................................4 3. Identifying how best to engage stakeholders ...........................................................................4 General Lessons............................................................................................................................5 References............................................................................................................................. 6 This document is intended as a resource to support the implementation of the WWF Standards of Conservation Project and Programme Management. Stakeholder analysis is an important...
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...Chapter 1 The Corporation and Its Stakeholders McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Ch. 1: Key Learning Objectives Understanding the relationship between business and society, and the ways in which they are part of an interactive system Considering the purpose of the modern corporation Knowing what is a stakeholder and who a corporation’s market and nonmarket and internal and external stakeholders are Conducting a stakeholder analysis, and understanding the basis of stakeholder interests and power Recognizing the diverse ways in which modern corporations organize internally to interact with various stakeholders Analyzing the forces of change that continually reshape the business and society relationship 1-2 Introduction – The Business and Society Relationship Business: Any organization that is engaged in making a product or providing a service for a profit Society: Human beings and the social structures they collectively create Business and society are highly interdependent 1-3 Introduction – The Business and Society Relationship We borrow “General Systems Theory (GST)” from biology to explain this relationship; first introduced in 1940s Theory posits that organisms cannot be understood in isolation, even though they have clear boundaries; they can only be understood in relationship to their surroundings Adapted to management theory means that business ...
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...STAKEHOLDER ANALYSIS UNIVERSITY July 14, 2014 Stakeholders are a powerful force in business from both an economic and societal point of view. “Stakeholder theory is a theory of organizational management and ethics.” (Phillips, 2003) Stakeholders are the individuals, groups, and organizations who can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.” (Hitt, Page 19) “Stakeholders can include employees, customers, owners/investor groups, suppliers, unions, professional /industry associations, government, community neighbors, NGOs, educational institutions, neighbors, the media and so on.” (Fowler, 2014) Managing for stakeholders involves attention to more than simply maximizing shareholders. It is not an excuse for managerial opportunism. Stakeholder Theory does not require changes to current laws; it is not a theory of socialism; it is not a comprehensive moral doctrine; and it is not applicable only to corporations. (Phillips, Page 484) An organization in return have a dependency relationship with its stakeholders. The more critical and valued a stakeholder’s participation, the greater a firm’s dependency becomes. They continue to support an organization when the firm’s meets or exceeds their expectations. Both, the organization and the stakeholders have responsibilities towards each other in their own interest. “It is important to gain feedback from a variety of stake holders. This...
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